Credit utilization

[Anonymous]

PS.  Regarding your cards....

(1)  Can you clarify exactly how many open cards you have?

(2)  Of these, have some of them not been used for a while?

(3)  You mention an Amex.  Are you certain that the Amex is a credit card and not a charge card?  If it is a charge card you should not use the Amex as the card that reports the small positive balance.

(4)  Do you have any closed accounts (cards or otherwise) with a positive balance?  If so, these should be a high priority to pay off.  If you have any collections, let us know because you actually want to not immediately pay those off.  Instead you will want to negotiate a PFD agreement before doing that.

[Shaman0429]

I have a subscription to myfico. I know it costs money but it gives the most accurate scores and the scores I posted came from there. My current "mortgage" middle score is a 651.

I have 9 open CC TL. I will have the entire remaining 18k paid by the 15th of November if not sooner. 

Some of them are used while some of them I just keep around for the age of the credit line and some dire circumstance.

The AMEX is a Delta Skymiles CC it is not  the charge card (apperantly I cannot qualify for one of those)

No closed accounts, no collections, just several 30 day lates in a 60day period and my student loan went 120 days late in july of last year as I thought it was in forberance while I was working with them to adjust the payments. Sp no bankruptcies no forclosures just debt and payment history

As for my timeline. The truth is I could stay in my 1600/mo rental home indefinately and call it good I don't have to purchase a home now nor at any date in the future. I would like to do so to improve my lifestyle a bit, but there is ZERO urgency. I do need to refiance this student loan 6.25% is waaay to high in this interest rate environment. So I need to get my scores up as high as I can. 

If you guys have some guidence to make the biggest impact in shortest amount of time. I'm ready to execute and can allocate resources to do it. Incidently I have a very good relationship with my Credit Union and could likely call on them to lend to me if need be

[Anonymous]

Wonderful news regarding timeline for the home purchase!  Here is what you should be doing, in order of priority:

(1)  Always pay at least $2 more than the minimum payment on every card that you have.  Never pay only the MP.  And always pay on time -- never be late on any payment going forward

(2)  Pay all cards to under 87% (if you have any that high).

(3)  Pay all cards to under 67%.

(4)  Pay all cards to under 47%.

(5)  Then use whatever strategy feels best to pay off all revolving debt.

After you have paid off the CC debt, begin implementing the Goodwill Letter Saturation Technique.  You can find it described on this site.  It will give you the best chance of getting all your lates removed.

Another thing I will suggest is to use each of your nine cards once for a small purchase and then let the card report a positive balance on the next statement   After that pay the balance in full.  If some of those cards have not been used in a long time they may have been classified as inactive or are at risk of being closed.  Part of good card hygiene is to use a card once every six months for something small.

After your CC debt is paid off then you can refinance the loans (or you can wait to see what progress you will make on the Goodwill Technique first -- up to you).

[Anonymous]

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@Shaman0429 wrote:

I have a subscription to myfico. I know it costs money but it gives the most accurate scores and the scores I posted came from there. My current "mortgage" middle score is a 651.

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Which version of the myFICO Ultimate do you have -- the $30/mo or the $40/mo?

I am personally not crazy about that product since it costs $500 a year when there are free alternatives, but it can be the right choice for a particular person and situation depending.  I would certainly keep it around until all your CC debt is paid off.  You'll be curious to look at your mortgage scores after that.

[Shaman0429]

I agree 100% that that product is highway robbery but in my circumstance I care more about the Intel than the cash. I have the 40/mo plan. I try and check my scores on the dates I know the TLs report.
I will research thr goodwill saturation letter technique I got nothing but time and opportunity if you guys think it's effective

[Anonymous]

Keep using the myFICO product for at least 2-3 months, since it will give you some really cool info after you pay off all the CC debt.

After that, you may decide to rethink it.  If by the end of the year you think you'll be buying a house soon, by all means keep it.  If you decide that the home purchase will not happen for another 12 months, I'd cancel it.  That's just me -- all that info is just overkill in my opinion.  Do be aware that myFICO's scores are not more accurate than if you were to get the same scores somewhere else.  In other words a FICO 8 Classic score will be just as accurate if you get it free at Amex or a number of free sites than if you get it at myFICO.

Good luck!